© Reuters. FILE PHOTO: Semi truck trailers are pictured at freight trucking company Yellow’s terminal near the Otay Mesa border crossing between the U.S. and Mexico in San Diego, California, U.S., August 7, 2023 after the company filed for bankruptcy protection.
NEW YORK (Reuters) -Bankrupt trucking company Yellow Corp will not seek court approval to borrow $142.5 million from private equity firm Apollo Global Management (NYSE:) at a Wednesday court hearing, instead choosing to delaying its request to a future court date.
The company, which filed for bankruptcy on Sunday, had planned to seek approval to borrow the first $60 million of a new $142.5 million loan to facilitate an orderly sale of its vehicle fleet and other assets. But a revised agenda published before the hearing indicates that Yellow will discuss the proposed loan in court without seeking approval for any new funding.
The proposed loan, if approved, would put Apollo first in line for repayment ahead of the U.S. Treasury Department, which is owed over $700 million on a pandemic bailout loan approved by former President Donald Trump’s administration in 2020.
Yellow filed for bankruptcy on Sunday with just $39 million cash on hand, which the company said was not enough to run a months-long bankruptcy sale for its 12,000 trucks, real estate holdings and other assets.
Yellow blamed its collapse on a labor dispute with the International Brotherhood of Teamsters union. The union, which represents about 22,000 Yellow employees, said the Nashville, Tennessee-based company “mismanaged” its way to bankruptcy despite concessions made by workers.
